By Meghan Hall
Leased-up office assets in core markets like downtown San Jose are continuing to prove their value, even against the backdrop of an uncertain economic future due to COVID-19. In a transaction that closed on June 29th, Beacon Capital Partners sold off a 15-story office building for $131.83 million, or about $575 per square foot. The property was purchased by Barrett Block Properties, based in Burlingame, Calif.
The Silicon Valley Business Journal was the first to report the deal.
Beacon originally purchased the property back in April of 2018 from Bit Holdings for $101.5 million, or about $443 per square foot, according to public property records. Previously, Bit Holdings had acquired the asset for $80.952 million in January of 2015.
The property, located at 160 W. Santa Clara St., totals 229,000 square feet and features 17,000 square foot floor plates with oversized windows. Amenities include on-site management, a shared executive conference facility, parking, fitness center and lockers, and on-site car-wash and detailing services. In an extra perk for tenants, the building features Shift, a tenant amenity program that offers a wide range of wellness classes, educational programs, social and community service-related events.
Beacon undertook a variety of capital improvements over the course of its ownership, including a new lobby and exterior, updated conference center and tenant lounge, and secure bike storage.
According to the property’s website, one suite, totaling 14,858 square feet on the fifth floor, is available for lease. The building is mostly leased to Threat Matrix, also known as LexisNexis Risk Solutions.
The asset is also located in one of the most desirable parts of downtown San Jose, within walking distance of San Pedro Square Market, the SAP Center, the San Jose Museum of Modern Art and Tech Museum, among other amenities. It is close to Interstate 289 and Highway 87 and is adjacent to the Downtown Area Shuttle (DASH) line.
Large-scale transactions have been fewer this quarter, but those that do occur give insight into the resiliency of office assets throughout the region.